Managers must ride the blockchain wave for business transformation
Multinational banks in HK are already using distributed ledger technology solutions to increase transparency, reduce fraud
Blockchain isn’t a concept managers can afford to ignore. It is time to wrap your brain around what it is so you understand the impact on your business.
Blockchain is a type of distributed ledger technology that enables data to be confidently shared between a network of participants. The confidence stems from the ability to mathematically prove that the data hasn’t been tampered with, that access is controlled, and the assurance that everyone is accessing the same view of the data.
If you’re thinking: “Why the silly name?” And “I’m still not sure I get what it is.” You are not alone. But keep reading.
The name derives from the fact that it stores data in “blocks” that are linked together cryptographically and chronologically into a “chain” made of complex mathematical algorithms. (So now the name should make more sense).
Data is presented to a network of validators who work to achieve a consensus via a number of different possible mechanisms. Once the data is validated and consensus is achieved, the next block is created and updated across the network of nodes. Once created, the ledger cannot be altered, and it is updated for everyone in the network at the same time.
That’s what makes it consistent, durable and secure with controlled access such that each packet of data is only accessible by those with the appropriate access keys.